A kernel panic is an action taken by an operating system upon detecting an internal fatal error from which it cannot safely recover. The term is largely specific to Unix and Unix-like systems; for Microsoft Windows operating systems the equivalent term is “stop error” (or, colloquially BSOD “Blue Screen of Death”).
The default [is] to wait, so if this happen on one of your servers and you don’t notice it all its services could stay down for some time, while using an automatic reboot the problem could be solved quickly.
We can configure a directive that will automatically reboot the system when a kernel panic is detected.
Full article here:
How to reboot Linux automatically on Kernel Panic (Linuxaria)